Abstract

This chapter analyzes the relationship between the exports and the Gross Domestic Product (GDP) of Brazil, Russia, India, China and South Africa (BRICS). The purpose is to measure the cumulative average effect that the exports of these countries have had on their economic growth. At this point, the relationship between China and Brazil stands out, since the Asian giant’s exports to Brazil have contributed, to a greater extent than Brazil’s exports to China, to economic growth. Two estimation procedures are used for comparative purposes: a traditional VAR model and a Bayesian VAR model. This Bayesian approach offers superior goodness of fit.